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Bedminster,,New,Jersey,-,19,November,2016:,President-elect,Donald,Trump<\/p>\n Bedminster,,New,Jersey,-,19,November,2016:,President-elect,Donald,Trump<\/p>\n
Peter Schiff didn’t mince words after President Donald Trump’s new trade agreement<\/a> with the European Union. <\/p>\n The deal is at odds with Trump\u2019s \u201cAmerica First\u201d narrative, the economist and gold advocate argued on social media. That\u2019s because industrial America will pay the price\u2014literally.<\/p>\n What Happened: In a fiery post on X, Schiff wrote: “We will pay 15% tariffs to buy most European goods, but 50% tariffs to buy European steel, aluminum, or copper\u2026”<\/p>\n His verdict? “Americans lose again.”<\/p>\n Trump has a trade deal with the EU, where Americans lose again. We will pay 15% tariffs to buy most European goods, but 50% tariffs to buy European steel, aluminum, or copper, driving up material costs for many U.S industries. Europeans won’t pay any tariffs on most U.S. imports.<\/p>\n \u2014 Peter Schiff (@PeterSchiff) July 27, 2025<\/a><\/p>\n Schiff is often critical of Trump\u2019s policies. His latest post echoes his sentiments from April, on the heels of Trump\u2019s so-called \u201cLiberation Day.\u201d <\/p>\n \u201cBy putting America first, Trump has put America last when it comes to investment returns,\u201d Schiff said<\/a> on X. \u201cAmerica\u2019s consumer-driven economy will fall apart.\u201d<\/p>\n Why It Matters: Schiff warned that the sharply higher tariffs on essential metals will raise costs for American manufacturers across sectors\u2014from construction and cars to defense and energy. <\/p>\n With European steel, aluminum, and copper now slapped with a 50% tariff, U.S. industries dependent on those imports could see thinner margins and less competitive pricing globally.<\/p>\n Economists<\/a> and CEOs predict<\/a> these companies will likely pass some or all of the extra cost on to customers.<\/p>\n Read Also: Trump Shock Treatment Ignites Copper Boom\u2014And It\u2019s Only Getting Started<\/a><\/p>\n Observers also argue that tariffs could deliver gains for certain U.S. metal producers. Domestic buyers may pivot away from now-costlier European suppliers, thus boosting the stocks of Alcoa Corp (NYSE:AA<\/a>), Nucor Corp (NYSE:NUE<\/a>), and Freeport-McMoRan Inc (NYSE:FCX<\/a>).<\/p>\n If material costs rise broadly, American miners and smelters could command better prices and improved volumes.<\/p>\n Still, Schiff remains skeptical. While certain U.S. stocks may catch a tailwind, the economist insists the macro impact could be inflationary and productivity-draining.<\/p>\n According to Schiff, Trump’s EU deal trades campaign optics for long-term economic pain\u2014and investors would be wise to read between the tariffs.<\/p>\n Price Action: The Materials Select Sector SPDR Fund (NYSE:XLB<\/a>) is up about 10% year-to-date, as can be seen here<\/a>.<\/p>\n Read Next: <\/p>\n Image: Shutterstock<\/p>\n